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LVMHQ4 and FY 2004 Sales
January 19, 2005
2January 19, 2005
LVMH FY 2004 Sales Highlights
• Double-digit FY organic sales growth
• Positive contribution from all business groups on a constant perimeter basis
• For Q4 : 7% increase in organic sales on an increased comparable basis
• Record sales in December
3January 19, 2005
LVMH FY 2004 Sales
2003 2004
11 962
Structure-1 %
Change-4 %
Organic+11 %
12 631
Q1 Q2 Q3 Q4
2 850 2 828
2004
3 0793 874
in millions of Euros
4January 19, 2005
3 791
Structure-1 %
Change-4 %
Organic+7 %
3 874
Analysis of Sales Increase in Q4 2004in millions of Euros
Q4 2003 Q4 2004
5January 19, 2005
Solid Growth in 2004
10% 10%7%
19%
Q1 2004 Q2 2004 Q3 2004 Q4 2004
6%
-4%
6% 8%
Q1 2003 Q2 2003 Q3 2003 Q4 2003
Organic sales growth %
6January 19, 2005
France
Europe(exc. France)
US (inc. Hawaii)
Japan
Asia (exc. Japan)
Others6%
15%17%
21%
26%
15%
LVMHFY 2004 Sales by region in Euros
% of total sales
2004
7January 19, 2005
LVMHFY 2004 Sales in the US in Dollars
Champagne & Wines +8%
Cognac & Spirits +30%*
Fashion & Leather Goods +22%
Perfumes & Cosmetics -26%*
Watches & Jewelry +11%
Selective Retailing +25%
Total LVMH Group +17%
2004
* Note respective structural effects: consolidation of Millennium/ sale of Bliss and US fragrance licenses
8January 19, 2005
LVMHFY 2004 Sales in Japan in Yen
Champagne & Wines +17%
Cognac & Spirits -14%
Fashion & Leather Goods -2%
Perfumes & Cosmetics +5%
Watches & Jewelry +5%
Selective Retailing +26%
Total LVMH Group 0%
2004
9January 19, 2005
LVMHFY 2004 Sales in Asia in Euros
Champagne & Wines +36%
Cognac & Spirits +9%
Fashion & Leather Goods +19%
Perfumes & Cosmetics +14%
Watches & Jewelry +20%
Selective Retailing +25%
Total LVMH Group +19%
2004
10January 19, 2005
LVMHFY 2004 Sales in Europe in Euros
Champagne & Wines +7%
Cognac & Spirits +7%
Fashion & Leather Goods +5%
Perfumes & Cosmetics +1%
Watches & Jewelry -6%
Selective Retailing +5%
Total LVMH Group +3%
2004
11January 19, 2005
Structure+ 1%
Change- 4%
Organic+ 11%
2 116
780
1 336
2 279
1 421
451
858
460559
Wines & SpiritsFY 2004 Sales
809
in millions of Euros
2003 20042004
Champagne & Wines
Cognac & Spirits 217 198 214 229
234 262345
580
Q1 Q2 Q3 Q4
12January 19, 2005
Wines & SpiritsStrong growth of premium brands
Champagne & Wines• Champagne volumes up 6% in FY 2004 (excluding Canard Duchêne)• Steady pricing policy, improvement in product mix• Strong progress of Moët Hennessy Wine Estates
Cognac & Spirits• Hennessy volumes up 6% in FY 2004• Strong growth in VSOP and XO high-end qualities• Good performance in the US and Russia, rapid development of
the Asian market, in particular China and Taiwan• Majority stake in Millennium and double-digit sales increase
in Belvedere vodka • Acquisition of premium single malt whiskies : Glenmorangie, Glen Moray
and Ardbeg
Continued strengthening of the international distribution network
13January 19, 2005
4 149
Structure+ 0%
Change- 5%
Organic+ 10%
4 367
Q1 Q2 Q3 Q4
1 065 9581 080
Fashion & Leather GoodsFY 2004 Sales
1 264
in millions of Euros
2003 20042004
14January 19, 2005
Louis VuittonContinued exceptional performance
• Achieved double-digit sales growth at constant currency in FY2004 and increased market share
• Continued sales growth in the US and in Asia, notably in China
• Increased sales to Japanese clientele worldwide
• Created numerous innovations throughout the year • First jewelry collection Emprise• New Trianon and Trompe l’oeil leather lines• New blueberry color leather for Epi line• Launch of Lovely Pink watch for women
• Further store network expansion• 23 net openings in 2004 (4 in China), for a total of 340 stores at year-end• Major openings in Q4 : Hangzhou (China), Johannesburg (South Africa),
Kyoto (Japan)
15January 19, 2005
Fashion & Leather GoodsReflecting growth potential
• Double-digit sales growth of Celine in FY 2004• Success of Boogie and Poulbot bags and
launch of Chouquette bag• Strong progress in Europe and Asia
• Donna Karan : continued selective US distribution
• Fendi : reduction in discounted sales in Europe and the US, good performance in Asia
• Double-digit sales growth in FY 2004 for Loewe, Marc Jacobs, Pucci and Berluti
16January 19, 2005
2 181
Structure-3%
Change-2%
Organic+4%
2 154
Q1 Q2 Q3 Q4
473 500 523
Perfumes & CosmeticsFY 2004 Sales
658
in millions of Euros
2003 20042004
17January 19, 2005
Perfumes & CosmeticsStrategic distribution reorganization
• Organic growth of 4% in 2004 despite reorganization of US distribution
• Good performance by Parfums Christian Dior, with the success of its new women’s perfume Pure Poison and good momentum of its make-up lines
• Progress of Guerlain with the launch of L’Instant de Guerlain pour Homme and the full-year effect of the women’s version
• Strong growth at BeneFit Cosmetics, Fresh and Acqua di Parma
18January 19, 2005
502
Structure-15%
Change- 4%
Organic+18%
497
Q1 Q2 Q3 Q4
106128 123
Watches & JewelryFY 2004 Sales
140
in millions of Euros
2003 20042004
19January 19, 2005
Watches & JewelryConfirmation of sales rebound
• Increasing market share of all brands and performed well in very competitive market
• Improvement in marketing effectiveness and good press coverage of all brands
• Confirmed success of all new collections• Formula One, Link, Carrera lines at TAG Heuer
• Open concept and women’s line Star at Zenith
• Chiffre rouge of Dior
• Liens and Class One of Chaumet
20January 19, 2005
3 039
Structure0%
Change-6%
Organic+17%
3 378
Q1 Q2 Q3 Q4
755 787 814
Selective RetailingFY 2004 Sales
1 022
in millions of Euros
2003 20042004
21January 19, 2005
Selective RetailingGood end of year
• DFS• Strong sales rebound following tourism recovery and rapid growth
of Chinese tourists• Opening of new Galleria in Okinawa
• Sephora• Excellent year in France and in Europe• New innovative services • Exclusive sale of trendy make up brands
and latest clinical skincare products• Double-digit sales growth on a comparable store basis
in 2004 for the fourth consecutive year in the US• Very promising start for first Sephora store in Toronto, Canada
22January 19, 2005
LVMH FY 2004 Sales Conclusion
• Organic sales growth continued in 2004
• Year ends with strong momentum
• Continuing to concentrate on star brands, innovative and quality products, improving profitability
• Estimated 2004 operating income increase : around 10%
Objective for 2005
Tangible increase in Operating Income